Jointly owned property ,but wanting to part company

struggling_but_positive

Pink shoes,

Thanks for the response and yes you are right...I should have looked at different scenarios.
This is one of the downfalls of buying with family. It just never occured to me that this scenario could ever have arisen as we were quite close.

I am going to put this to her and see what happens.

Thank you all for your help and I will let you know what happens!!

pleasedelete

You need to sit down and go through it all together.

I like houseprices as it doesn't put a spin on it (unlike zoopla) which tries predict values. These are the prices the properties went through the land registry at- so real selling prices not estate agent prices. The land registry prices are often looked at by mortgage valuers to get a sense of a fair price and this can be a barrier to getting a mortgage based on an agreed sale value. So £180 for the same flat? last year may be an indication of what a valuer would place on yours ( it may not if there was a reason this one was cheaper). So even if you find a buyer at £195 it may only be valued at £180.

struggling_but_positive

Paul,

I do want to keep things civil, and you are right in your assumption. She does think there is about 20k equity in the property that she is entitled to.
It is a matter of explaining the figures to her I guess.

Thanks for the breakdown of figures.

pinkshoes

struggling_but_positive wrote: »

Pink shoes,

Thanks for the response and yes you are right...I should have looked at different scenarios.
This is one of the downfalls of buying with family. It just never occured to me that this scenario could ever have arisen as we were quite close.

I am going to put this to her and see what happens.

Thank you all for your help and I will let you know what happens!!

I own a property with an ex, and he lives in it. This is the exact arrangement we have (i.e. he pays rent, and we both pay half the mortgage), although I let him pay below the market rent as it's 100% occupancy, and prevents us having to have a buy to let mortgage. If/When it's sold, then everything is then split 50/50.

As the £195k is an EA estimate, then chances are there is NO equity. In which case, I'd let her pay you the mortgage payments she owes you, then suggest putting the house on the market. It'll probably sell for enough to cover your selling costs, so you get to walk away with £4500 from her, and she gets nothing.

You can then pay off your debts, rent somewhere cheaper, and start again!

struggling_but_positive

That being the case, the property could actually be in negative equity which would be of no use to her.

struggling_but_positive

I wish that I had put that kind of arrangement in place when I moved into the property!!

Oh well, life is a learning curve. My main aim is to reduce the amount of debt associated with my name:)

pleasedelete

Just to add that if the mortgage company is willing to remove her name she should consider itbeven if she gets no cash. She may find it hard to get another mortgage while on that one . The company may not be willing to remove in the future. The property may fall further in value and then she would owe money. You could stop paying and she would be liable for tne full amount (as you would be).

struggling_but_positive

I will make that point to her as it may sway her in the right direction.
I am just a little concerned that she may be able to carry out some action that would leave me homeless!

Thank you again for the all the advice.

Update to follow!!

Paul_the_Painter

She could force the sale of the house, however this could only be achieved by a court order. This would a.) take time, and b.) cost money. At the end of the process, the house would be sold, you would be homeless, and the money gained by the sale of the house, would probably only just pay off the mortgage and the sale fees and court costs. So she would end up with nothing.

Any competant solicitor would advise her of this.

Wouldn't worry about that one myself.

neverdespairgirl

struggling_but_positive wrote: »

It is now year 6 and she has approached me stating that she would like me to sell the property so that she can get "her share."

This has caused me concern as I have alot of debt which I am trying to clear and there is no way that I could afford to buy another place to live.

In addition, I am confused as to what "share" she is entitled to as she has not contributed to any of the bills or mortgage.
I dont want things to become unpleasant, but I feel she is being unreasonable.

She's not been paying, but she's not had the benefit of living there either.

Sorry to sound harsh - but your debt isn't really your sister's problem, is it?

What did you agree when you bought? About when one of you wanted to sell?